- Prime Minister Phillips highlightsproject as pivotal to economic growth
GEORGETOWN, Guyana – Senior finance minister Dr. Ashni Singh recently joined Prime Minister Brigadier Mark Phillips in a significant visit to Guyana’s transformative Gas to Energy project.
During the visit, Dr. Singh and the president of the U.S. EXIM Bank formally signed a Term Sheet for the $527 million loan, approved on December 26, 2024, to bolster the project. The signing occurred on-site at Wales on the West Bank of Demerara, under the supervision of Prime Minister Phillips, accompanied by U.S. ambassador to Guyana Nicole D. Theriot and other government officials.
Prime Minister Phillips emphasized that this milestone marks a pivotal moment in Guyana’s history, stating that the project will serve as the foundation for a stronger economy poised to compete globally.
“This is indeed a transformative project, the largest in terms of size and financing undertaken by the Government of Guyana. It exemplifies vision, partnership, and the vast possibilities of shared goals,” the Prime Minister asserted. He highlighted that the agreement with U.S. EXIM Bank signifies a robust belief in Guyana’s potential for a prosperous future.
Before the signing, Dr. Singh noted that the financing from the U.S. EXIM Bank underscores the strong U.S.-Guyana relationship. He emphasized the historic nature of the transaction as a model for future collaborations.
“While the journey may have felt slow at times, achieving half a billion in funding in just over two years is a remarkable feat,” Dr. Singh stated, expressing gratitude to all involved in advancing the project.
Dr. Singh encouraged local businesses to utilize the resources offered by U.S. EXIM Bank, reiterating that Guyana is open for business and eager for increased U.S. investment.
In her remarks, the president of U.S. EXIM Bank commended the growth of Guyana’s economy, highlighting this initiative as a crucial step on their shared journey. She noted that the board’s unanimous vote for the loan underscores its significance as a game changer for both nations, facilitating energy security, environmental sustainability, and economic opportunity.
In a previous address, President Irfaan Ali announced plans to cut electricity costs by 50 percent for consumers in Guyana, projecting over $250 million in savings that would significantly improve disposable income across the nation.
“This investment promises more than $50 billion back into the hands of the Guyanese people,” he explained.
He further explained that the Wales development hub is vital for energy consumption and will foster new industry opportunities, job creation, and economic expansion.
“Our gas strategy aims to provide low-cost electricity for local development while monetizing gas for export in the medium term,” he stated.
For the 2024 budget, $80 billion has been earmarked to advance the project and improve infrastructure, including distribution and transmission upgrades for power delivery.
The project will feature a 200-kilometer pipeline transporting gas from the Liza Destiny and Liza Unity Floating Production fields onshore, with an additional 25 kilometers extending to a Natural Gas Liquid (NGL) plant in Wales. The comprehensive project is set to bring numerous benefits to Guyanese, including increased job opportunities, enhanced electricity access, foreign investment, and improved energy security.
In 2022, the signing of a landmark $2 billion Memorandum of Understanding between Guyana and U.S. EXIM Bank laid the groundwork for utilizing the bank’s standard financial instruments for government projects, marking a significant advancement in U.S.-Guyana relations and paving the way for impactful developmental interventions.
